Details on the deal

On Oct. 4, over 75,000 Kaiser Permanente workers began a three-day strike to fight for more staffing, higher annual pay raises, and more, marking the largest healthcare strike in U.S. history. The previous contract between the unions and Kaiser Permanente expired on Sept. 30.

In the tentative deal, the two sides agreed to pay raises of 21%, the establishment of a $25 hourly minimum wage for healthcare workers in California and a $23 minimum wage elsewhere, limiting of subcontracting and outsourcing, streamlining hiring practices, an increase in educational funding, an increase in training, and the establishment of large-scale hiring events, according to a release from both Kaiser Permanente and the unions.

According to Dave Reagan, president of Service Employees International Union-United Healthcare Workers West, the deal also includes provisions for a new performance sharing program where employees will receive bonuses based on how many patients receive vaccines and how many experience reductions in blood pressure.

Steve Shields, SVP of national labor relations at Kaiser Permanente, said the two sides also agreed to update their labor management partnership, which was established 26 years ago.

The deal will have an effective date of Oct. 1, 2023, and is subject to approval by union members, who will begin voting on Wednesday.

Reaction

In a release, President Joe Biden said he's grateful to both sides "for coming together in good faith to ensure these workers can continue caring for our neighbors and loved ones."

"Millions of Americans are safer today because tens of thousands of dedicated health care workers fought for and won the critical resources they need and that patients need," said Caroline Lucas, executive director of the Coalition of Kaiser Permanente Unions. "This historic agreement will set a higher standard for the health care industry nationwide."

In a statement, Kaiser Permanente officials also praised the proposed deal. "The new four-year agreement will offer Coalition-represented employees competitive wages, excellent benefits, generous retirement income plans and valuable job training opportunities that support their economic well-being, advance our shared mission and keep Kaiser Permanente a best place to work and receive care," they said.

John August, a program director at Cornell University's School of Industrial and Labor Relations and former executive director of the Coalition of Kaiser Permanente Unions, said the deal "will impact health care workers outside of Kaiser," especially the agreement on a higher minimum wage. "It's a great pressure point for the rest of the industry, for sure," he added. (Devereaux, Modern Healthcare, 10/13; Trang, STAT, 10/13; Abelson/Baumgaertner, New York Times, 10/13)

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